CAIRO — The City of Cairo began evaluating its budget for FY2009 Monday.

The Cairo City Council held a workshop with newly returned City Manager Chris Addleton and Finance Director Cecil Rash to make a first run-through of the budget draft (approximately $36 million), compiled by city staff.

“I think there are some more cuts we can make,” said Addleton, who returned to the city May 1. “I’ve not looked at every line item in each department’s budgets, but I think we can take out more.”

Most of the discussion stemmed from a $1.4 million gap between revenues and expenses.

“The discussion really centered on do we close that gap by increasing rates or do we go back and try to reduce the operating and capital budgets,” Addleton explained Tuesday. “At the present time, I’m reviewing both.”

The gap was caused by increases in benefits, gasoline, power and other items (such as water/sewer, solid waste), he said.

The net gross profit margin (does not include operating, salaries, maintenance and other expenses) was listed as $4.2 million but was only $3.4 million.

Mayor Pro Tem Jimmy Douglas said it should have been caught and he would have a hard time voting for “any kind of rate increase" at this time.

Mayor Richard VanLandingham told council at the workshop it would need to find $1.4 million to cut out of the budget.

The council also asked Addleton to revisit prices for all requested vehicles (and examine the possibility of a county-wide vehicle specifications list and replacement policy) and council members made a few requests, including placing a quint (ladder) truck for Cairo Fire Department back in the budget and getting a project (Ga. 111 to 13th Street SW on Fourth Avenue SW) near Washington Middle School completed.

Councilman Ernest Cloud said the project (ditch work, piping, sidewalk, gutter) has been in the budget past years and should be a priority. He suggested taking out the sidewalk portion (said it was not needed) and putting that money toward the rest.

Addleton said there is $25,000 left (streets and sidewalks) that is available. Another $25,000 is in the budget draft.

The council also talked about Special Purpose Local Option Sales Tax (SPLOST) projects.

Rash was instructed to speak with County Administrator Rusty Moye in order to determine how much the city could count on per year (Addleton said $385,000 this year), factoring in its payment schedule for joint projects.

Addleton told the council he also wanted to look at tipping fees at Cairo Landfill and a complete salary and compensation review by Carl Vinson Institute of Government.